Bitcoin (BTC) is starting another week in a volatile place as global macro volatility dictates sentiment.

After a week-long close a few inches above $19,000, the largest cryptocurrency is still lacking direction as nerves build up over the resilience of the global financial system.

Last week was a testing period for investors in risky assets due to dismal economic data from the US as well as from Europe.

Thus, the eurozone serves as a backdrop to the latest concerns of market participants, who monitor the financial stability of major banks into question.

As the war in Ukraine escalates as winter approaches, it is perhaps understandable that hardly anyone is optimistic – how could this affect Bitcoin and cryptocurrencies?

The BTC/USD pair is still below its all-time high in the previous halving cycle, and in comparison to the 2018 bear market when it does flow, this also marks a new multi-year low.

Cointelegraph takes a look at five BTC price drivers to watch for in the coming days, with Bitcoin staying below $20,000.

Spot price avoids lower weekly close for several years
Despite the bearish sentiment, Bitcoin’s weekly close could have been worse – just above $19,000, the largest cryptocurrency managed to add a modest $250 to last week’s close, according to data from Cointelegraph Markets Pro and TradingView.

BTC/USD (bitstamp) weekly candlestick chart. Source: Trading View
However, the previous close was the lowest since November 2020 on the weekly time frames, and thus traders continue to fear that the worst is yet to come.

“The bears were in full swing last night in Asia while the bulls failed to give us good highs to work with,” famous crypto trader Tony wrote in part of an update on Twitter that day.

Others agreed with the conclusion that BTC/USD is in a low volatility zone, which will require a breakout sooner or later. All that remains is to decide on the direction.

“The next big step,” Credible Crypto replied:

“Usually before these big moves and after capitulation, we see a period of low volatility before the next big move starts.”
As Cointelegraph reported, the weekend was already heralded for high volatility, as evidenced by Bollinger Bands data. This was in line with the increase in volume, a key factor in maintaining potential movement.

Fellow trading account Dr. Profit concluded that “Bitcoin’s weekly chart shows a significant increase in volume since the start of the third quarter + weekly bullish divergence on one of the more reliable timeframes”:

“Bitcoin price increase is only a matter of time.”
Not everyone saw the impending comeback. In the weekend forecast, crypto trader Il Capo listed a range between $14,000 and $16,000 as a long-term target.

Detailed BTC/USD chart. Source: Il Capo at Crypto / Twitter
“If this is a real bottom…Bitcoin should be trading around 25K-26K at the moment,” said the Profit Blue trading account, charting a double bottom structure likely to develop on the 2-day chart.

Credit Suisse gets nervous when the dollar’s strength is not going anywhere
In addition to cryptocurrencies, attention is drawn to the fate of the world’s major banks, in particular Credit Suisse and Deutsche Bank.

Liquidity concerns have led to emergency public reassurances from the former CEO, with executives reportedly spending the weekend reassuring top investors.

The collapse of the banks is a sore point for undersea producers – it was the government’s bailouts of creditors in 2008 that led to the creation of Bitcoin.

As history increasingly wants to chime in after nearly fifteen years, Credit Suisse’s saga does not go unnoticed.

On the same day, founder Mark Jeffrey tweeted, “We can’t look inside CeFi Credit Suisse, as if we can’t look inside CeFi Celsius, 3AC, etc.”, comparing the situation to the collapse of the crypto fund at the beginning of this year.

According to Samson Moe, CEO of Bitcoin startup JAN3, the current environment could still give Bitcoin time to shine through a crisis rather than remain tied to other risky assets.

“Bitcoin price is already down, well below the 200 WMA,” he said, pointing to the 200-week moving average that it lost as support for the bear market.

“We have a UST/3AC contagion and the leverage is already down. Bitcoin is being sold in bulk as a hedge. Even if Credit Suisse/Deutsche Bank collapsed and caused a financial crisis, we wouldn’t see ourselves any lower.”
However, with the volatility already prevalent in the global economy and rising geopolitical tensions, the Bitcoin markets are voting with their feet.

Source: CoinTelegraph